HUL shares slip over 2%; top five takeaways from June quarter earnings

NEW DELHI: Hindustan Unilever (HUL) reported a 9.7 per cent year-on-year (YoY) growth in net profit at Rs 1,174 crore for the quarter ended June 30, which was largely in line with consensus estimates.

The FMCG major reported a net profit of Rs 1,069.16 crore for the quarter ended June 30. Total income increased from Rs 7,967.43 crore for the quarter ended June 30, 2015, to Rs 8,235.70 crore for the quarter ended June 30, 2016.

HUL shares closed 2.04 per cent down at Rs 920.45. They hit a low of Rs 910.40 and a high of Rs 947 in Monday’s trade on BSE.

Here are the five top takeaways from HUL’s Q1 earnings:

Change in management: HUL announced key changes in their management. Punit Misra, who currently holds the position of Executive Director and VP, sales and consumer department, has decided to leave the company to pursue an external opportunity. Srinandan Sundaram, currently VP skin care, will take over from Punit. The change will be effective from September 1, 2016.

Manufacturing unit in Assam: The company has decided to set up a new manufacturing unit in Assam with proposed investment of about Rs 1,000 crore. The investment is subject to receipt of requisite approvals and clearance. The new unit will augment the production capacity of personal care products for the company.

Approved divestment in Kimberly-Clark JV: The board approved to divest its shareholding in Kimberly-Clark Lever Private (KCLL) to its JV partner, Kimberly-Clark Corporation (KCC). The above decision is in line with HUL's core business, the company said in a statement. The JV was formed as a 50:50 partnership in 1995.

New sales: Net sales grew 3.6 per cent during the quarter with domestic consumer business (FMCG) growing by 4 per cent compared to ET Now poll of 6 per cent.